Preheat the oven to 350°F (175°C) and line a baking sheet with parchment paper.
In a large mixing bowl, beat together the softened butter, cream cheese, and granulated sugar with an electric mixer until the mixture is creamy, light, and fluffy—about 2-3 minutes. The sound should be smooth, and the mixture will turn a pale yellow color.
Add the egg and vanilla extract to the mixture, then beat again until well combined, about 1 minute. This creates a smooth, homogeneous batter with a fragrant aroma.
In a separate bowl, whisk together the flour, baking powder, and salt. Gradually add these dry ingredients to the wet mixture, mixing on low speed or folding gently with a spatula until just combined. The dough will start to come together and feel soft but slightly sticky.
Gently fold in the diced strawberries with a silicone spatula, distributing them evenly throughout the dough. You'll see bits of strawberries contrasting against the dough, giving it a rustic look and fresh aroma.
Use a tablespoon or cookie scoop to drop dough balls onto the prepared baking sheet, spacing them about 2 inches apart. Slightly flatten each ball with the back of a spoon to promote even baking.
Bake in the oven for 12-14 minutes, or until the edges are lightly golden and the centers look set but still soft. The cookies will smell sweet and fruity as they bake.
Remove the cookies from the oven and let them cool on the baking sheet for 5 minutes. Then transfer them to a cooling rack to cool completely—this helps prevent sogginess and keeps their tender texture.
Serve the cookies at room temperature, enjoying the tender, moist crumb dotted with juicy strawberries and the rich, tangy cream cheese flavor. These treats are best enjoyed fresh but can be stored in an airtight container for a day or two.